HEXPOL acquires MULLER KUNSTSTOFFE – a leading Central European manufacturer of thermoplastic elastomer compounds (TPE Compounding)

HEXPOL acquires MULLER KUNSTSTOFFE – a leading Central European manufacturer of
thermoplastic elastomer compounds (TPE Compounding)

 

HEXPOL AB (publ) has come to an agreement with the German Rowa Group to acquire
Horst Müller Kunststoffe GmbH & Co. KG.

Müller Kunststoffe is a leading Central European developer and manufacturer of
thermoplastic elastomer compounds (TPE Compounding) and has two production units
in Lichtenfels, Germany.

”The acquisition constitutes yet another step in our ambition to broaden our
product range within our Compounding business area” says Georg Brunstam,
President and CEO of HEXPOL Group. “The market for TPE compounding is undergoing
great growth with interesting and increasing customer applications within the
field of medical, consumer, general industry and automotive. Müller Kunststoffe
perfectly complements our European TPE compounding operations where we already
have units in the UK and Sweden. We are also right now building a manufacturing
plant in southern China for TPE compounding. Müller Kunststoffe is a
well-established and well-managed company with strong management and a strong
brand.”

Müller Kunststoffe is expected to be consolidated during January 2012 after
subject to regulatory approvals and other customary conditions and has an
estimated annual turnover of approximately 46 MEUR with around 90 employees. The
acquired business has an EBITDA margin slightly lower than the HEXPOL Group but
is expected to have a positive impact on earnings per share from the start. The
acquisition price adjusted for acquired net debt amounts to 39 MEUR and is
funded by a combination of cash and existing bank loans.

For further information, please contact:

Georg Brunstam, President and CEO
Tel: +46 (0)708 55 12 51

Urban Ottosson, CFO/ IR
Tel: +46 (0)767 85 51 44